What is a stakeholder?
A group, person or orgarnisation that has an interest in how an organisation is run.
Stakeholders are not the same as shareholders.
Name the two types of stakeholders.
- Internal Stakeholders
- External Stakeholders
Internal stakeholders are from within the business, while external stakeholders are from outside.
List four internal stakeholders.
- Employees
- Managers
- Shareholders
- Owners
These stakeholders have a direct interest in the business’s operations.
List five external stakeholders.
- Suppliers
- Banks and Lenders
- Government
- Local Community
- Customers
External stakeholders can influence or be influenced by the business but are not directly involved in its operations.
what are employees
interest and influence.
interest-
* good salary
*job satisfaction
*good working conditions
*job security
influence-
*they can change standard of their work
*industrial action
Employees can engage in actions like strikes or overtime bans to express their influence.
what are shareholder interest and influence
Interest
Want the firm to be profitable
Healthy dividends
Improved share value
Influence
They can influence decision making
They can vote for certain board Directors
They can choose to sell their shares
Suppliers interest and influence
Interest
will want the business to be successful to ensure repeat customers they depend on this customer for survival
Influence change prices/discounts quality of product/service
change their lead times
Banks, interest and influence
Interest
They want to make sure cash flow is stable
So they can ensure a repayment
Influence
They can choose whether to grant or withhold loan
They can extend or shorten loan repayment period
They can change the interest rate rates
Government influence and interest
Interest
Ensure business to be legal
Interest in profits
Influence minimum wage act
Can issue bans example smoking in local areas
Set taxation rates
Offer or withhold grants and licenses
Local community interest and influence
Interest
Companies provide jobs for an area
Businesses offer good/services
The community cares about the area they live in
Influence
Can make complaints to local authorities
Can protest company being in their area
Customers influences and interest
Interest
They want best quality products
At lowest price possible
Range of goods and services
Influence
They can choose whether or not to purchase goods or services
They may recommend to friends family or reviewing services

Examples of interdependence
Owners and employees
Owners and customers
Examples of conflict
Managers and customers
managers and employees
Employees and customers
Owners and suppliers
Owners and bank
Owner and government
Owner and local community

